Treasury's $4.37M Contract for Private Collection Agency Services Awarded to The CBE Group, Inc
Contract Overview
Contract Amount: $4,372,187 ($4.4M)
Contractor: THE CBE Group, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-05-18
End Date: 2026-08-17
Contract Duration: 456 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT
Place of Performance
Location: CEDAR FALLS, BLACK HAWK County, IOWA, 50613
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $4.4 million to THE CBE GROUP, INC. for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT Key points: 1. Contract value of $4.37M for essential debt collection services. 2. Awarded via full and open competition, indicating market availability. 3. Potential risk related to agency performance and taxpayer data security. 4. Sector: Administrative and Support Services (NAICS 561440).
Value Assessment
Rating: good
The contract value appears reasonable for a bridge contract of this duration and scope, covering essential collection services. Benchmarking against similar contracts for private collection agencies would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to fair pricing and allows multiple qualified vendors to participate.
Taxpayer Impact: The use of private collection agencies aims to recover delinquent debts, potentially increasing government revenue and reducing the burden on taxpayers for uncollected amounts.
Public Impact
Ensures continued government debt recovery operations. Potential for improved efficiency in collecting delinquent accounts. Requires robust oversight to protect taxpayer information and ensure fair collection practices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Performance monitoring of collection effectiveness.
- Data security and privacy compliance.
- Fair debt collection practices adherence.
Positive Signals
- Leverages private sector expertise in debt collection.
- Competition ensures a potentially cost-effective solution.
Sector Analysis
This contract falls within the administrative and support services sector, specifically collection agencies. Spending in this sector is driven by the need to manage and recover delinquent government debts across various agencies.
Small Business Impact
The data does not indicate if small businesses were involved in this specific award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight will be critical to ensure the contractor meets performance metrics, adheres to all federal regulations regarding debt collection, and maintains robust data security protocols.
Related Government Programs
- Collection Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Contractor performance history.
- Data security and privacy risks.
- Compliance with debt collection regulations.
- Effectiveness of collection strategies.
Tags
collection-agencies, department-of-the-treasury, ia, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.4 million to THE CBE GROUP, INC.. PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT
Who is the contractor on this award?
The obligated recipient is THE CBE GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $4.4 million.
What is the period of performance?
Start: 2025-05-18. End: 2026-08-17.
What is the historical performance of The CBE Group, Inc. in similar government contracts?
Historical performance data for The CBE Group, Inc. in similar government contracts is crucial for assessing reliability and effectiveness. Reviewing past contract awards, performance reviews, and any documented issues or successes would provide valuable insight into their capabilities and adherence to contractual obligations.
How does the pricing structure compare to industry benchmarks for private collection agency services?
Comparing the pricing structure to industry benchmarks is essential for determining value for money. This involves analyzing the fee percentages or per-unit costs against those charged by other reputable collection agencies for similar types of debt and recovery volumes.
What are the specific performance metrics and service level agreements (SLAs) in place for this contract?
Specific performance metrics and SLAs are vital for measuring the contractor's success and ensuring accountability. These should include targets for debt recovery rates, response times, compliance with regulations, and customer service standards for debtors.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Collection Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2033H625Q00025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1309 TECHNOLOGY PKWY, CEDAR FALLS, IA, 50613
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,852,311
Exercised Options: $4,372,187
Current Obligation: $4,372,187
Actual Outlays: $3,158,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QRAA24D0062
IDV Type: FSS
Timeline
Start Date: 2025-05-18
Current End Date: 2026-08-17
Potential End Date: 2026-08-17 00:00:00
Last Modified: 2026-02-10
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